TCG BDC's Earnings: A Preview

On Tuesday, May 04, TCG BDC CGBD will release its latest earnings report. Benzinga's outlook for TCG BDC is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect TCG BDC's EPS to be near $0.36 on sales of $41.12 million. TCG BDC reported a per-share profit of $0.42 when it published results during the same quarter last year. Sales in that period totaled $50.55 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 14.29% decrease in the company's earnings. Sales would be down 18.65% from the same quarter last year. TCG BDC's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of TCG BDC were trading at $13.76 as of April 30. Over the last 52-week period, shares are up 87.06%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. TCG BDC is scheduled to hold the call at 11:00:00 ET and can be accessed here.